Good Morning FJ and Everyone: As you know, I tend to post rather infrequently and only when I have something important to say. Well I've got plenty to say this Tuesday.
No matter what has happened in the past, in amongst the disappointments, there have been some notable successes. What should not be lost on any investor in regards to this stock is that by any measure with conventional or unconventional Internet valuations, FNTN is woefully undervalued in comparison to most.
In addition in comparison to many BB companies, I believe FNTN has been reasonably forthright in its investor relations, whilst not overlooking the fact that some mistakes may have been made.
What is evident is that in general they have continued to surprise us with the quality of their appointments to their board of directors, the appointments of Alan Spar and Alan Ross, the apparent depth of the relationship that is developing with Siemens and the indisputable quality and dependability of their video and their growing web presence.
Suddenly, the Internet is abuzz with Video-Mania. If Yahoo is now trying to buy Broadcast.com (BCST), for 4 Billion Dollars, for fear of being left behind in a rapidly emerging Video environment, how much does that make FNTN worth? Perhaps a whole lot more than it is now. Remember when FNTN took off last July when Broadcast.com first went public? Based upon my rather conservative valuation ratio between the two companies of 8 to 1 pre-split, FNTN should be around $6 per share based on its Video potential alone.
At least you can actually get on demand video at FNTN, without having to adjust your set and the fact that in this new age of emerging Internet and Intranet Video, the broadcast medium of the future, it's comforting to know that some of FNTN's valuation should be measured in Michael Sheppard, who in is own right is acknowledged to be one of the top Video specialists on the Planet. I think that says a lot about where FNTN could be headed in the unfolding innovations of the future.
If legendary Internet Incubator CMGI is willing to spend 100 (One Hundred) Million Dollars to get into the Internet Video business in direct competition to Broadcast.com, it tells you something about the future and where we are headed. The good news is that the Internet is now so huge, that there will be plenty of business for everybody. In fact, it is quite likely that there will be too much business and not enough companies. Definitely not enough companies who can really deliver the goods dependably and consistently.
In the process of conducting some routine research at the request of a company who wanted to know more of the approximate capabilities of FNTN's broadcast or multi-cast potential, I learned that it is apparently, technically possible for some 5,000 to 10,000 viewers to simultaneously access FNTN's videos. Obviously this has profound implications for any number of applications that may be possible in the future.
Most here have invested in this company because of a strong belief that they have something special and potentially unique that is going to put them ahead of the curve. If Alan Spar proclaimed that he saw FNTN a company with the most interesting potential since the early days of Netscape, he must be seeing their vision of the future in a way in which as yet we are all unable to and he obviously must like what he sees.
The Internet is littered with all kinds of claims of perfect video, but with few exceptions attempts at flawless quality viewing are few and far between.
Monday, another company with Multimedia and Video aspirations, Intervu (ITVU), shot up 13 5/8 to 47 dollars giving it a market cap of some $400 Million. Does it deserve such a premium, the market says yes, but only you can decide. Lets look at a few comparisons that are not unlike Financial Intranet if you fast-forward one year earlier in the case of Intervu and then compare revenues and losses versus FNTN:
Intervu 1997 Revenues $ 143,000 Losses 5.2 Million
Intervu 1998 Revenues $1,700,000 Losses 15.7 Million
FNTN 1998 Revenues $ 98,.000 Losses 2.17 Million
FNTN Est 1999 Revenues $5,000,000 * Operationally profitable *
* Based on forward looking statements by Management
I'd say FNTN is doing a pretty good job of holding costs down and if they can deliver on the claimed 1.5 - 1.75 Million as indicated only requires as few signatures to complete within the first quarter, I would call that impressive. FNTN would appear to have a lot more going for it than the promise of many Internet high-flyers.
Now lets look at the SB2 and the likelihood that FNTN will soon be full reporting. That alone based on the average gains of companies achieving such status could add as much as $1.50 to $2.00.
Next consider the fact that FNTN now has Financials available on hundreds of thousand of Bloomberg terminals all over the World under the heading of Internet Content - That means that Mutual Funds and Research analysts on the prowl for undervalued Internet / Intranet companies are going to stumble on FNTN sooner or later. Now that FNTN is in this category, should any of the rumored upcoming publicity on CNBC or CNN eventuate, most investors, broker dealers and Investors are going to be checking their terminals as they routinely do when any kind of new kid on the block shows up. As the content of their Website continues to improve and some new videos are probably featured, this could become a compelling situation for many long term investors, especially if the financials improve.
Then on top of that there is Siemens: Anyone who underestimates the importance of Siemens recent statements that they see Financial Intranet and the Belgian Government as their two Multimedia showcase vehicles of choice for the US and Europe, if not the World, is not reading the real message here. For a huge Multinational to make the kind of statements about Financial Intranet it has recently made, has to be major news.
Don't forget Financial Intranet has had quite a long relationship with Siemens now and was there in the beginning mapping out the future with them before the Internet went crazy. Now that FNTN's and Siemens jointly developed expertise is showing such outstanding promise in the fast changing World of the Internet that is now all of a sudden gripped by a Video fever and Video mania, things could change very fast. If for example CMGI or some other suitors started sniffing around, would Siemens spring to their defense and a bidding war ensue. Stranger things have happened, including a sudden rash of acquisitions by Siemens in the multi-billions in its mission to assemble the Internet infrastructure of the future: VIDEO! Where does FNTN fit in. Well they've got great VIDEO and potentially they've got the content and the means to deliver it to the masses.
Now lets take a look at another company to compare with Financial Intranet.
Pronetlink is well known to many on this thread and some people have periodically asked for my comments.
I must admit I missed the recent explosive move up in Pronetlink (PNLK), because like FNTN, it was sitting at around the same levels that FNTN is now trading at and lo and behold, just one announcement of a joint venture or strategic partnership with AT&T was enough to send this stock from .75c to almost $3 in less than 24 hours. Now I forget the exact nature of the release, but it seemed to me to be a lot like the kind of relationship that Financial Intranet already has with Worldcom going back two years, which since FNTN made its arrangements has grown in size and stature to equal AT&T. ($173 Bn). Since Financial Intranet became a strategic partner of Worldcom it has grown fourfold to a market cap of $167 Bn and is one of the most aggressively expanding Telecommunications companies in history. They seem to have a knack for associating themselves with big winners. A couple of years ago Siemens was not considered a Web presence. Today they've got some of the hottest award-winning technology on the Planet.
Interestingly Pronetlink has a rather unique service that appears to hold considerable potential and like FNTN has captured the imagination of many investors alike. Whilst I find cruising around the FNTN website relatively simple, I have had some problems in doing searches on their site and trying to get a handle on how their business model really works and what it offers. At least most of the information available at Financial Intranet is tangible and useful and is readily and rapidly available. The most amazing part is that Pronetlink has 36 million shares out, but that didn't stop it from tripling in a day, giving it a market cap that has fluctuated between $75 Million and $100 Million. I haven't yet found out how their financials look.
And here's something else. At least FNTN has its own data feed and somewhat proprietary format for the delivery of Financial Information, Charts and other data.
Last week a company called Multex.com went public with an opening market cap of $720 Million and they don't even have their own charts and quotes. They are relayed from another vendor. Considering the wealth of information including extensive Mutual Fund Info available, I think FNTN deserves a much higher valuation by the marketplace. Seems almost as if their Intranet component is not factored into the equation. Do we have to wait for an Intranet mania to develop before our day will come.
In spite of all, that may come soon. If FNTN starts getting besieged with offers from Broker Dealers and Institutions to underwrite or market their APO, this issue could become quickly oversubscribed leaving the common stock as the only means to invest in the venture. Since Internet IPO's are selling out within an average of 30 mins on some of the online brokerage websites, it stands to reason that an Internet company selling at a substantial discount to most other Internet IPO's could be snapped up very rapidly.
In summary, I would have to speculate that when the much rumored joint announcement with Siemens goes out round the World and investors begin to wake up to some of the unforeseen potential in this company, market forces will not be able to hold this stock down. Especially if they can deliver all the toppings!
fntn.com
Rgds to all
Wiz
|
